Growth in the U.S. economy lagged in the first quarter of the year, as gas and food prices rose and unemployment dropped only slightly.

Total economic output for the country grew by 1.8 percent in the quarter, theCommerce Department said Thursday, marking a significant slowdown from the fourth quarter of 2010, when growth was at 3.1 percent.

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Economists had estimated growth of about 2 percent, so the actual numbers – which might still be revised – were slightly lower than anticipated. “While the continued expansion is encouraging, clearly, faster growth is needed to replace the jobs lost in the downturn,” Austan Goolsbee, chairman of the Council of Economic Advisers, said in a statement following Commerce’s release of the numbers.

“We will continue to work with Congress to find ways to reduce spending, so that we can live within our means and focus on the investments that are most likely to help grow our economy and create jobs – investments in education, infrastructure, and clean energy,” Goolsbee added.

Federal Reserve Chairman Ben Bernankesaid Wednesday at his first-ever press conference that the slowdown is viewed as “transitory” by most members of the Federal Open Market Committee, which guides monetary policy. But, he added, there may be “possibly just a bit less momentum in the economy” than there had been.

The drop in gross domestic product is largely the result of decreased government spending, falling exports and higher commodity prices, the Commerce Department said.

"It was self-serving politicians who convinced recent generations of Americans that we could all stand in a circle with our hands in each other’s pockets and somehow get rich." -- Paul Harvey [Paul Harvey Aurandt] (1918-2009) American radio broadcaster Source: The Biggest Tax You Pay, Conservative Chronicle, November 8, 1995

“While the continued expansion is encouraging, clearly, faster growth is needed to replace the jobs lost in the downturn,” Austan Goolsbee, chairman of the Council of Economic Advisers, said in a statement

Team POLITCO.............. chairman of OBAMA's Conuncil of Economic Advisers..................OBAMA's POLITCO........

Well, normally, this is where the presidents name is inserted............but notice how POLITCO looks to Bernanke as the scapegoat...........

Obama has proven that's he's out-of-touch and over his Pay-grade when it comes to POTUS.........

Let's retire Obama in 2012 and hire someone who WILL focus on America's top issues............Jobs, balancing the federal budget, economic growth, entitlement reform, and repealing Obamacare........

Romney.........2012....................."if you want a proven Fiscal Conservative that is focused on the "real" issues Americans care about the most........

American voters have to wake up to reality. In 2008, we bought a well spoken lemon.

Americans have come to expect "lower than expected" performance results from Obama. Quarter after quarter & month after month we get similar poor results. Always "lower than expected."

Each time the administration announces their economic report card its like the movie Ground Hog Day. Same poor results over & over.

According to Obama's planned stimulus spending spree promises, we should be at around 7% unemployment. The actual results fall way short.

By election time his stimulus is to have unemployment down to 5.5%.

That is the number voters will hold him accountable for. His defenders on the left such as seldom watched MSNBCs Chris Mathews has been trying to plant the seeds on his program of a targeted 7% unemployment rate by election time.

Unfortunately for Mathews & his brethern on the left, voters are onto that old school bait-n-switch.

Every home in USA could become an energy incubator. Required is an Executive Order eliminating strictures against wind turbines attached to houses in the city, and all other county and township rules and regulations simplified. Every roof top can be shingled with solar voltaic shingles and wind turbines attached to side walls with a solar panel to turn the blades when the sun is shining and the wind is down.

michael s lev in son is an independent write-in candidate for president and the above are only the tip of the iceberg relative to the jobs he will create. visit michael s lev in son dot commie.

freemmind123 you left-wingers hate the stockmarket and Wallstreet..................yet you point to them for ............hope, how sad.

This is how this works. During a recession you cut costs and make sure the business is more efficient. Then you wait for to see if demand is raising. Then you start hiring again. How do you know that demand is picking up? You see the revenues and profit margins. The returns have been good hence the increase in the price of shares. Uneployment has dropped slightly and there is a reasons to believe businesses will be hiring more people.

Do not assume you know me. People are complicated. I voted for a GOP congressman and undecided on 2012. Likely to vote for Obama.. The least best option and depends on how sensible the Republican is.

Uneployment has dropped slightly and there is a reasons to believe businesses will be hiring more people.

This is where the President's administration can be faulted. They have not dipped into the 'Strategic Reserve' to deal with this short term, speculation created price bubble in the oil industry. These prices are not due to a drop in supply, rather due to investors hedging against future, possible drops caused by political problems in the Middle East. These speculation-caused bubbles in energy become a drag on the rest of the economy. Our Presidents should begin to use the 'Strategic Reserve' more vigorously, to stabilize prices during such bubbles.

Simple fact: GDP going DOWN to only 1.8% last quarter is an indictment that Obama's economic policies are not working very well.

The trend, stupid. I do not mean that as an insult. Lets say I know what I talking about. I know higher commodity prices and the winter blizzards have had an impact. Last quater there was 3.1% growth. I know this is worrying times for most Americans. But I can tell that good managed businesses are doing well.

But the drag of energy prices is holding back that growth. People can't purchase other things when they are paying so much for gas or fuel oil. Businesses either.

This is where the President's administration can be faulted. They have not dipped into the 'Strategic Reserve' to deal with this short term, speculation created price bubble in the oil industry. These prices are not due to a drop in supply, rather due to investors hedging against future, possible drops caused by political problems in the Middle East. These speculation-caused bubbles in energy become a drag on the rest of the economy. Our Presidents should begin to use the 'Strategic Reserve' more vigorously, to stabilize prices during such bubbles.

You are correct on reading of the situation. This is not still a supply problem. Libya use to give 3% of the oil and still operating at a lower capacity. Other countries can make up for it. People are thinking Saudi Arabia could be next hence all the speeculation.

Thats one of the reason I am not going to advice to use the strategic reserve. One it is not a supplu problem Two, there could be worse situation when we must use it. Because there is a inelastic demand for oil as it is essential homogenous commodity there always have been collusion in price fixing and hence the huge prodit margin. Certain collusion is to be expected but there must be investigation on wide scale premeditated collusion.

We know that the inflation numbers are slanted against reality by omitting energy and food as factors. We know that the unemployment numbers disguise the true situation by not taking into consideration people who drop out of the labor market because they feel it's hopeless. Why should we believe anything this administration says?

Wrong, wrong, wrong! The actual unemployment rate is 17.1%!!! The BLS (Bureau of Lies and Subterfuge) always quotes the U-3 number, which doesn't take into account those who are underemployed or those whose benefits have expired and have dropped off the radar.

Regarding the underemployment issue, would team Obama consider a victory someone who formerly made $60K and recently took a job as a fry cook at McDonald's? Because the jobs that are being filled aren't high paying ones!